Method and apparatus for efficient image compression

The invention provides method and apparatus of video bit stream encoding. In non-intra type encoding, block pixel differences between a target block and the corresponding best match block is compared to other blocks' to determine whether a bit stream of a previously compressed block can be used to represent a target block. In Intra-coding, a target block is compared to other blocks to determine whether a bit stream of a previously compressed block can represent the target block. A variable length code is applied to represent the tables of coding the predetermined sub-band DC coefficients.